Getting started in real estate investing at 19 years old!
Hello everybody. Finally getting ready to start flipping homes. My biggest problem I am facing is getting capital to invest, but I found a solution. I figured no bank is going to give me money since I am 19 with no collateral. So a year ago I bought a house at my local tax deed sale. I drove by it, didn't look inside and bought it. Lucky it didn't sale at the auction so I bought it after the auction. $845.00 had the title search and came back clean. Needless to say I ended up going inside to find my worst nightmare or so I thought. The chimney was leaking and rotted out all the floor joists, termite damage on top of that and mold all in the attic. I ended up tearing it all down by hand and started construction in May 2017. I got moved in December and just need to build my porch and finish the master bathroom and it'll be done. (Weather is not letting me start the porch). I didn't hire anything to be done besides finishing the drywall (that was a mistake). Everything else was done by me myself and I. While working a full time 3rd shift factory job. I took on about $11,000 of debt to finish the house everything else came out of my pocket. I use to buy and sell livestock, done woodworking, flipped and few cars and still currently flipping trailers car trailers etc. My house is a 3 bed 2 bath 1290 sqft house. I have about $30,000-$35000 grand in it. Game plan is to get a home equity loan from the bank. It is in process now. It appraised for $60,000 drive by appraisal. But they have to come back and do a full appraisal since I tore it down and started over. I was suppose to close this Thursday but since I found all this out today it's going to get pushed out about 1 week. I went and looked at a cute little house 3 bed 1 bath 1004 sqft house with a 1 car attached garage. They are asking $21,900 it has been for sale for awhile so hoping I can get it for $15,000 stick about 10-15000 in it (rehab Prices are inflated quite a bit should have no more then $10,000 in it but better safe then sorry. It should sale anywhere between $60,000-$80,000 hard to get a better number since houses that are selling are out dated. They bank said they will give me $51,000 but that number might go up depending on the full appraisal. So with that money I plan on paying of my debt (intrest is higher on the $11,000 then on the home equity loan) and using the rest to invest! Sorry for the long read! Any input, tips, and tricks is highly appreciated! Thanks in advance!